Industrials, Infrastructure Firms Dominate Upcoming IPO Lineup

India's IPO Market Shifts Toward Industrials and Infrastructure

The Securities and Exchange Board of India (SEBI) has received draft red herring prospectuses (DRHPs) from 222 firms, with the majority belonging to the industrials and infrastructure sector. This concentration of firms is followed by consumer companies, financials, and energy & utility companies. In contrast, technology companies account for a relatively modest share, with only 11 companies in the pipeline, marking a significant shift from the tech-heavy IPO cycle following the pandemic.

The 222 firms are spread across 81 industries, with civil construction emerging as the largest subsector, boasting 17 companies in the queue to come to the market. This is significantly higher than other sectors, such as iron & steel products or gems and jewellery, which have nine companies each, and pharmaceuticals and power generation, which have seven companies each.

The overindexation of construction-linked companies in the firms coming to market is attributed to the government's thrust on infrastructure. Most of the 17 companies mention both private and public sector capacity expansion as key drivers of scaling up and growth. Developing and modernising the infrastructure sector has been a priority area for the government, with notable initiatives leading to robust secular growth in most segments within the sector.

In its DRHP filed with the regulator on May 14, 2025, Ravi Infrabuild Projects noted that infrastructure development has remained a recurring theme in India’s economy. The firm highlighted the multiplier impact that infrastructure development has on other segments, such as cement, bitumen, iron and steel, chemicals, bricks, paints, tiles, and financial services. Specifically, a unit increase in expenditure in the construction sector has a multiplier effect on other sectors with a capacity to generate income as high as five times in other sectors.

LCC Projects, another firm in the civil construction industry, highlighted global interest in the country's economic growth as a key driver of growth. The firm noted that India has achieved a remarkable milestone in its economic journey, with gross foreign direct investment (FDI) inflows reaching an impressive $1 trillion since April 2000. Of this, the share of FDI in infrastructure has been steadily rising, at 34 percent in FY24.

| Sector | Number of Companies | | --- | --- | | Industrials and Infrastructure | 222 | | Consumer Companies | | | Financials | | | Energy & Utility Companies | | | Technology | 11 |

The primary market appears set to mirror the broader economy’s shift toward investment-led growth, placing industrials and infrastructure firmly at the center of the next phase of listings. With a robust pipeline in place, the upcoming IPOs are likely to drive growth in various sectors, including cement, bitumen, iron and steel, chemicals, bricks, paints, tiles, and financial services.